Moving to a New Place? No Termination Fees for Switching to Cheaper Electricity Plan in Texas

Moving to a New Place? No Termination Fees for Switching to Cheaper Electricity Plan in Texas

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Jun 11, 2024

If you're moving, you can leave current electricity contract with no fees.

Are you planning to move and worried about the early termination fees for your electricity contract? Good news for Texans! The Texas Administrative Code has got your back, allowing you to switch electricity providers without any financial penalties when you move. This guide will explain how it works and what you need to do.

Quick Summary

  • No Early Termination Fees: If you're moving, you can leave your current electricity contract without paying early termination fees, thanks to the Texas Administrative Code.
  • Shop for Better Rates: This rule gives you the freedom to look for a new electricity plan with lower rates when you relocate, as long as you provide proof of your move.
  • Check Out Gatby: If you're moving, try out Gatby - we'll let your old provider know you've switched and sign you up with your new one.

FAQs

What Does "No Early Termination Fee" Really Mean?

If you're relocating and have to leave your current address during the term of your electricity contract, you won't have to pay the early termination fee. This is contingent on providing proof of relocation, such as a lease or rental agreement, proof of home ownership, or a forwarding address. This is stated under the Texas Administrative Code - Section 25.475, ensuring consumer protection in such scenarios.

What Proof of Relocation Do I Need to Provide?

To take advantage of this benefit, you may need to provide documents proving your move. Acceptable forms include:

  • Lease or rental agreement at your new location
  • Home purchase contract or mortgage statement for the new location
  • A recent utility bill or bank statement showing your new address
  • Proof of a forwarding address from USPS.com

What is the Texas Administrative Code?

The Texas Administrative Code (TAC) is a collection of all state agency rules in Texas. The rules concerning public utilities, including electricity service providers, are part of this code under Title 16, Part II. See here for the website.

What Does the Code State?

“A contract is limited to service to a customer at a location specified in the contract. If the customer moves from the location, the customer is under no obligation to continue the contract at another location. The REP may require a customer to provide evidence that it is moving to another location. There must be no early termination fee assessed to the customer as a result of the customer’s relocation if the customer provides a forwarding address and, if required, reasonable evidence that the customer no longer occupies the location specified in the contract.”

About the author

Maryellen Maddox

Maryellen Maddox

Head of Ops


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